Key findings: HR payroll processing services
This procurement market intelligence report offers insights into the supply chain margins, category pricing dynamics, and supplier cost breakup. An analysis of the top suppliers and current market landscape is also offered in this report.
The spend momentum for HR payroll processing category is estimated to increase substantially, owing to the extensive use of payroll processing services in the manufacturing sector. Recent market studies show that manufacturing, retail, and healthcare are the three key end-users of HR payroll processing services and, together, account for more than 70% of the total market share. Market experts believe that the manufacturing sector, singlehandedly, accounts for more than 25% of the total market share. Much of this high demand for HR payroll processing services can be attributed to the sharp increase in employee volumes and the high preference for outsourcing complex payroll operations to relevant service providers. Outsourcing such activities helps enterprises to focus on their core business functions.
To access complete details on the annual spend growth rate until 2023, download a free sample.
Our reports from the corporate services category offer buyers with actionable data on the current and future supply market scenario. A coverage of the US market, including category spend analysis, pricing outlook, supplier cost structure, etc., is also offered in this market intelligence report on HR payroll processing services. Additional information includes an analysis of the cost and volume drivers, top suppliers, and category management strategies.
Insights offered in this HR payroll processing services sourcing and sourcing and procurement report will help the buyers understand:
- Global and regional spend potential for the period of 2018-2023
- Pricing models and the factors influencing them
- Strategies to achieve cost-savings
- Ease of market entry
Analyze the global category spend for HR payroll processing services
To survive in today’s competitive market space, companies across the globe have started expanding their offices to overseas locations. However, this is increasing the complexities associated with managing payroll processes owing to regulatory and financial changes in various countries. Outsourcing all such activities helps businesses to save nearly 15%-20% of the costs and provides visibility and control over payroll operations through consolidated reporting and analytics. This year alone, the global category spend on HR payroll processing services surpassed $19 billion. Access the complete year-over-year spend growth rate and category spend details by downloading a free sample copy.
This HR payroll processing services procurement research report offers a coverage of:
- Regional spend opportunity for suppliers
- Global and regional spend segmentation
- Cost drivers impacting pricing
Optimize category spend for HR payroll processing services
Collaborating with service providers who specialize in offering multi-country payroll processing services can help reduce excess spend. Such collaborations allow buyers to expand operations to various countries and avail cloud-based payroll services. Suppliers who offer such services typically use an MCPO software to manage payroll for smaller groups of employees in outlying countries. Implementing a decentralized payroll model, such as this, would help buyers reduce overall costs and complexities associated with the procurement process.
This market intelligence report on HR payroll processing services also offers a coverage of:
- Total cost of ownership
- Supply chain margins and outlook for input costs
- Overview and comparison of pricing models
Assess category spend for the US region
In the United States, nearly 40% of the businesses outsource their payroll technology hosting, maintenance, and support funtions to service providers. Companies with less than 10,000 employees typically utilize payroll outsourcing services that are either hosted or fully outsourced. Last year, the US had around 18,000 large companies and 28 million SMEs. These SMEs employ nearly 59 million people and are the major buyers of HR payroll processing services. As a result, there has been a sharp incline in the US payroll processing industry and experts predict that the industry will grow at a rate of 3% in the years to come.
Additional information offered in this HR payroll processing services sourcing and procurement report will help buyers analyze:
- Supplier cost structure in the US
- Margins of suppliers and category cost drivers
- Category spend potential in the US
Build strategies for effective supplier selection
Calculating the number of payroll errors, such as the wrong classification of employees as contractors and failure to deposit withheld taxes on time, within a given timeframe is one of the best strategies to select an appropriate supplier. Enterprises who procure HR payroll processing services from such suppliers can mitigate risks associated with non-compliance with tax regulations and issues related to employee payments.
This HR payroll processing services sourcing and procurement report identifies the major costs incurred by suppliers and provides additional information on:
- Supplier ecosystem
- Buyer and supplier KPIs
- Incumbent supplier evaluation metrics
Devise effective category management strategies for HR payroll processing services
Most companies have started moving away from the idea of in-house payroll processing since it increases business complexities. Keeping up with the continuously changing regulations in various regions can be a tumultuous task for companies. As a result, most businesses have started outsourcing all activities related to payroll services. Following such a strategy can help companies to save up to 20% in costs.
Key insights offered in this market intelligence report on HR payroll processing services will help the buyers identify:
- Critical KPIs for buyers and suppliers
- Category management objectives and risk management strategies
- Sustainability practices
Determine the spend dynamics for key geographies
Experts state that the average adoption rate of payroll processing services in Europe is more than 25% and is the highest in Northern European countries such as the UK. Outsourcing all activities related to payroll processing is a common practice for companies in this region since it provides them with flexibility and reduces complexities associated with regulatory compliance. However, a key point to note here is that Eastern European companies are hesitant when it comes to purchasing HR payroll processing services and prefer in-house payroll processing.
Key geographies analyzed in this HR payroll processing services procurement research report include the following:
- North America
- South America
Information on the top HR payroll processing services suppliers and major risks faced while procuring HR payroll processing services is offered in this market intelligence report. Download a free sample to access the report’s complete scope of coverage.
Key Features of Report (2017)
Procurement Best Practices
Cost Saving Opportunities
Supplier Capability Matrix
HR Payroll Processing Services - Category Spend Analysis
According to our latest HR payroll processing services sourcing and procurement report, one of the key growth contributors for the HR payroll processing services market is the use of cloud solutions for HR functions. The extensive use of cloud solutions for HR operations facilitate smoother automation, higher accuracy of data, and offer more user-friendly applications, thereby augmenting the adoption of HR payroll processing services among the buyers.
HR Payroll Processing Services – Procurement Best Practices
Buyers should engage with suppliers that provide one-stop solutions by bundling payroll processing services with benefits and administration services. This further allows them to negotiate better in terms of the price of services and it helps in curtailing the operational risks involved in coordinating with multiple vendors for different services.
HR Payroll Processing Services - Procurement Challenges
Based on the analysis in this HR payroll processing services sourcing and procurement report, a major procurement pain point experienced by the buyers is the misinterpreted requirements of buyers. Our procurement specialists predict that the buyers must engage with suppliers who can understand the requirements accurately.